Bipolar disorder is characterized by alternating periods of depression and mania or hypomania. It includes Bipolar I defined by at least one manic or mixed episode, Bipolar II defined by hypomanic episodes and major depressive episodes, and Cyclothymic Disorder defined by chronic mood swings. Genetic and environmental factors both contribute to its development. Treatment involves mood stabilizing medications like lithium, valproate, carbamazepine, and some atypical antipsychotics with electroconvulsive therapy used in severe cases.